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In-work benefits and unemployment

Tonin, Mirco and Kolm, Ann-Sofie (2011) In-work benefits and unemployment International Tax and Public Finance, 18, (1), pp. 74-92. (doi:10.1007/s10797-010-9148-6).

Record type: Article

Abstract

In-work benefits are becoming an increasingly relevant labour market policy, gradually expanding in scope and geographical coverage. This paper investigates the equilibrium impact of in-work benefits and contrasts it with the traditional partial equilibrium analysis. We find under which conditions accounting for equilibrium wage adjustments amplifies the impact of in-work benefits on search intensity, participation, employment, and unemployment, compared to a framework in which wages are fixed. We also account for the financing of these benefits and determine the level of benefits necessary to achieve efficiency in a labour market characterized by search externalities.

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Published date: February 2011

Identifiers

Local EPrints ID: 174579
URI: http://eprints.soton.ac.uk/id/eprint/174579
ISSN: 0927-5940
PURE UUID: b6e1ad67-b4c4-44cb-89dc-c739db20c3b5

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Date deposited: 15 Feb 2011 10:07
Last modified: 18 Jul 2017 12:11

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Author: Mirco Tonin
Author: Ann-Sofie Kolm

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